Leonardo: 2016 Preliminary Results and 2017-2021 Industrial Plan Focused on Development and Growth

(Source: Leonardo; issued Feb 23, 2017)

ROME --- Leonardo's Board of Directors, convened today under the Chairmanship of Gianni De Gennaro, approved the 2017-2021 Industrial Plan and examined the 2016 preliminary results. The Board of Directors will examine and approve the Draft Annual Report of 2016 on 15 March 2017.

-- 2016 New Orders at around EUR 20 billion. Backlog at the end of 2016 at ca. EUR 35 billion, ensuring almost 3 years of production

-- 2016 Net Result before extraordinary transactions at more than EUR 500 million, more than double 2015 at EUR 253 million (Emphasis added—Ed.)

-- 2016 FOCF at ca. EUR 700 million, more than double 2015 at EUR 307 million

-- 2017-2021 Revenue CAGR of 3%-5%, with RoS expected to be at 11% by the mid-point of the Plan
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-- Disciplined financial strategy aimed at balancing leverage reduction, investments in the business and returns to shareholders, safeguarding Group financial solidity

Mauro Moretti, Leonardo CEO and General Manager commented "The results achieved in the last three years – from 2014 to 2016 - confirm the effectiveness of the choices on which the Industrial Plan is based. Building on solid foundations from the turnaround phase, in continuity and consistency with what has been done, the 2017–2021 Industrial Plan will focus on the development and growth opportunities of the "One Company”.

“Targets and actions for this Plan will be profitable growth and long-term business sustainability, also economic and financial. We will continue to build a solid and credible journey aimed at creating value for all the stakeholders of the company, including customers, shareholders, employees and the Italian industry”.

2016 preliminary results confirm Leonardo and its business’ resiliency and the ability to achieve or exceed targets. It is even more evident considering the materially negative impact of the €/£ exchange rate and the challenging environment affecting some key markets, namely persisting difficulties in Oil & Gas and other civil Helicopter segments.

Click here for the full statement (5 PDF pages), on the Leonardo website.

(EDITOR’S NOTE: Leonardo’s statement does not detail the “extraordinary transactions” which affect its net result, so the unaudited net of “more than 500 million” requires confirmation.)